Interstate Banking and DIDMCA
Interstate banking rules under the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA)
NAIB Statement Following Tenth Circuit Hearing on Landmark Interstate Banking Case
Broad Coalition Supports Challenge to Oregon’s Restrictions on Interstate Banking
The American Lending Fairness Act of 2026 would reaffirm the authority of FIFMCA and the ability of state-chartered institutions to operate nationally.
A cornerstone of the U.S. banking system
For more than 45 years, DIDMCA has been an integral part of the U.S. banking system, allowing state-chartered banks to lend nationwide under a single, uniform federal framework, just as national banks do. As Congress intended, this system benefits consumers by expanding choice, increasing competition, and maintaining credit availability and affordability.
Recent actions by the states of Colorado and Oregon threaten to undermine the interstate banking system and access to responsible credit for consumers nationwide.
Limiting how credit can be priced doesn't make credit cheaper; it makes it less available. In response to Colorado and Oregon, lenders may reduce lending, change products, or stop serving some customers – particularly lower-income borrowers and people with less-than-perfect credit histories.
In 2023, Colorado enacted a law (HB23-1229) exercising its authority to opt itself and its state-chartered financial institutions out of DIDMCA. In doing so, Colorado reasserted its authority over its own state-chartered banks and credit unions.
However, Colorado has taken the position that its opt-out also allows it to enforce its state-level interest rates and fee caps on loans made by out-of-state, state-chartered institutions to Colorado residents. This directly conflicts with federal interstate banking rules under DIDMCA as well as 45+ years of federal case law authority and regulatory guidance.
Prior to the law’s effective date in 2024, NAIB – along with the American Financial Services Association (AFSA) and the American Fintech Council (AFC) – filed a federal lawsuit challenging Colorado’s expanded interpretation of the opt-out.
Colorado Background
On the heels of Colorado’s actions, Oregon passed House Bill 4116 on March 5, 2026, which applies its interest-rate limits to loans made by out-of-state banks, setting up a direct conflict with the longstanding federal interstate banking framework under DIDMCA. Governor Tina Kotek signed the bill into law on April 7, 2026.
On June 15, 2026, the National Association of Industrial Bankers, American Financial Services Association, and Online Lenders Alliance filed a lawsuit in the federal district court in Oregon against the Oregon Department of Consumer and Business Services seeking a preliminary injunction to prevent enforcement of House Bill 4116.
Oregon Background
Colorado
Key Milestones & Timeline
2023–2024 – Colorado enacts legislation opting out of DIDMCA and attempts to expand it to include loans to Colorado residents made by out-of-state lenders.
2024 – National Association of Industrial Bankers, American Financial Services Association, and American Fintech Council challenge Colorado’s law in federal court.
2024 - District Court – Plaintiffs obtain a preliminary injunction blocking Colorado from enforcing its erroneously broad interpretation of the opt-out provision against the plaintiffs and their members.
November 2025 – Tenth Circuit Court of Appeals reverses the injunction in a 2–1 decision, accompanied by a blistering 30-page dissent warning that Colorado’s approach is contrary to federal law, undermines uniform national credit markets, and risks higher costs and reduced access to credit for consumers. NOTE: The preliminary injunction remains in place pending further proceedings.
December 2025 – Plaintiffs request en banc (full 12 judge) review by the Tenth Circuit.
Amicus briefs filed in support of en banc review:
January 2026 – Colorado asks the Tenth Circuit to deny en banc review. NAIB, AFSA, and AFC reiterate strong concerns and consequences for consumers in response.
February 2026 – Reps. Davidson and Barr, and Sen. Moreno, respectively, introduce the American Lending Fairness Act to clarify and preserve the limited scope of authority provided to opt-out states under DIDMCA.
April 2026 — The 10th Circuit Court of Appeals grants en banc review of a motion for a full panel rehearing. Briefing will begin in May and conclude in mid-June. Order on Rehearing.
June 2026 — Amicus briefs filed in support of en banc rehearing scheduled for August 18.
Oregon
Key Milestones & Timeline
June 2026 – National Association of Industrial Bankers, American Financial Services Association, and Online Lenders Alliance challenge Oregon’s law in federal court.
July 2026 — Amicus briefs filed supporting the position taken by NAIB, AFSA, and OLA in National Association of Industrial Bankers v O’Day.
For more information, including relevant legal filings, visit the American Financial Services Association DIDMCA Resources page.